The coronavirus has battered many economies of the world, including that of Singapore. Our small economy could see its worst-ever recession if what the authorities have projected comes true. The Ministry of Trade and Industry expects Singapore’s gross domestic product to shrink between 4% and 7% in 2020, far worst than the 2.2% fall during the Asian financial crisis in 1998. Amid such tough times, it is important for investors in the stock market to be especially selective when it comes to picking stocks.

Screening for Strong Stocks

With the help of a stock screener, I screened out from the 700-odd Singapore stocks some of the companies with strong balance sheets. Those companies are more likely to withstand the harsh economic conditions brought about by COVID-19 than those that are bogged down by huge amounts of debt. I used three broad criteria to filter the universe of Singapore-listed stocks. Those criteria and the reasons I chose them are:...